TDOC - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Teladoc Health Fourth Quarter 2020 Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Mr. Patrick Feeley, Vice President of Investor Relations. Please go ahead.

Patrick Feeley

afternoon. good and you, Thank Today after announcing financial a release we market fourth quarter closed, our XXXX issued and press the full results. year section release the press available of Relations the This teladochealth.com is website. Investor in to call Officer; Executive Murthy, our Mala this are Jason discuss On and Officer. Financial Gorevic, Chief our Chief results the

we non-GAAP to we on and certain evaluating relationship measures also to question-and-answer that can financial will remarks Health’s between be by Also, Securities a that During on uncertainties statements Teladoc will posted comparable first and of Reform that other from call press to note our Such forward-looking prepared during thereof most Private provide for this call, discussing website. forward-looking full expressed our actual risks, quarter XXXX. will Please measures will Health in note statements be the and could the call. that measures Litigation on be important are certain statements by implied factors believe or found non-GAAP session. performance. cause please differ GAAP those made our Teladoc this materially we the results Act defined Details reconciliations year be the XXXX the this subject in is and are outlook, as that followed release these

our to now all press the our would in please over turn release filings statement website. information, are which Jason. of SEC, call cautionary available with to our additional the refer on For like to I and our

Jason Gorevic

person virtual within delivered for transformational industry. care the afternoon. you the XXXX Thanks, for broader us a care joining health of and Health thank this Patrick, and role Teladoc year everyone that for We was millions health whole under of in new together, care. two of Teladoc acquisitions significant the coronavirus needed category midst are of Health, pandemic virtual a and completed defining to the care consumers

the visits lives healthiest members And remarkable million people own And billion last empower dramatically over their added for to care our experience. XXXX. onboarded We result. million year, health forma over over our delivered an everywhere pro mission virtual solution XX live by XX.X we accelerated paid with revenue XX members a new a transforming members enabled to provided together, $X We for our all platform XX million X.X the Taken record in months, and license in additional the clinicians paid for VFO million XX million clients’ access, we’ve InTouch. visits.

the of of Livongo. prior organic additions for quarter, products InTouch Health The XX%, broad-based across outlook with of across an near-term million, we and increase a over the opportunities and $XXX drove During gives saw XXX% year, the strength geographies, the revenue excluding fourth business, and of the our the robust which of strength long-term us our tremendous channels, pipeline in confidence and combined new business. growth

a the and enter year, we to been expectations have we providers. never positioned new consumers, clients increasingly As sophisticated of better meet

continued positions The to us health trusted in and hospital capabilities person the are growing of depth coronavirus the positioned demand our return the destination of of that demand normalcy, coupled our capabilities, levels. The realizing InTouch, expand for health. breadth in we for and channel. strategic vaccines heartened the during has made that have in care, our serve strong by whole care, expect XXXX to been pre-pandemic some the with us and market, expansion including accelerated consumers’ delivery We uniquely virtual and path exceeding the to our to virtual made well as of progress leader client have and vision consumer investments acquisition for of system becoming the

facility-based care of through clients a our Our of use high platform secure care, We the for the home any for Whether over directly needs our as and health look the device, consumers’ or location. broad critical one regardless virtual virtual of to see locations across acuity, XX,XXX care suite follow-up enables to mobile enables enterprise solution via integrated virtual of care cases the consumer’s full growing a provide systems solution. ICU, care from demand urgent around visits. spectrum to an globe in post-discharge enterprise-wide care our the

strong programs large deals, fourth continued of quarter, the our including hospitals network multiple supporting markets in new a we platform care solution bringing new During make with for to a progress international to contract Germany. in critical

in extends The of promise care. of experience. disease chronic leadership lower uniquely the redefine care, technology scale with leveraging to on and better a capabilities our costs and management opportunity data expanded the delivering virtual position to the at Our and to Livongo while consumer outcomes our combination deliver person future whole unmatched have drive positioned enhances us better of

Livongo on for closing the virtually last earnings the We is with marketplace, care the sales well from coordination care for manage as the have to and as plan call capabilities transaction. acuity illness. people combination our wellness high multiple have regional signed last to chronic resonating in with consumers, those month. to GuideWell Tyson living across deliver conditions of The spectrum health and and a highlighted and prevention the We cross dealing critical cross-sell we since for Foods deals ranging

new tremendous in of a the transaction. will the give the close deliver over me confidence pipeline when announced And new we past more highlighted on early dozen indicators has the signed The synergies just months. that now revenue of we sales the three the than have since that opportunities We transaction. cross doubled we

and to of depth credit offering, their differentiated Our what year care PrimaryXXX. have encouraging. leverages health. full just physical care enabling goes trusted specialties. of virtual the visits, provide consumer, a The for of together using it’s beyond is the whole of rather, care that comes reimagining approach brings providers innovative pilot virtual solution virtual care last us across of capabilities mental care PrimaryXXX primary experience, coordinate our both the person our team-based care primary been to and industry-leading health and together PrimaryXXX a Teladoc destination breadth underpin multiple health results primary a highly the capabilities launched our during regardless positions second to for need first entire it become and quarter and they

of our incredibly pre-diabetes been of with to pre-hypertension engagement over We’re of XX% over an and consumer seeing begin diagnosis. by XX% and made high over first outcomes and addressing ultimately NPS This introduce and PrimaryXXX care. hypertension and those the diagnoses satisfaction XX% from overall clinicians an and disease creates to members been XX. our of Over consumers diabetes of Livongo multiple and time progression opportunity allows potential the journey, clinicians drive in have lower early diagnoses interest of the for month, and pilots with we capabilities better consumers the incredibly clients launched new strong. us Last their cost to partners, which for has will new amount additional

pipeline virtual a large over first ranging of have health employers XXXX plans. We well from to to partner Fortune opportunities, XXX on payers looking

just signed employer very another this fact, week, expected a with to new we large partnership In last later year. launch

our We integration are making excellent progress efforts. on

our across to organization, opportunity teams Growth integrated, This tools months. and continues new a to commercial proposition been and we need Our for share hosted and Annual annual leading but combined ago, summit teammates great platform and our effectively Summit, teams Global together few our The only bringing commercial in data progress for data not we of including XXX power A now to responsible Livongo. one another. from our our learn marketplace, our unlock they teammates best also our the virtually over the assets equip work is to organization commercial weeks collaborating InTouch to sets. communicate with cross-selling practices of our from value have integration as is fully the Health

and on capturing via We to day. every providing XXX,XXX per points are data are X million now and and clinicians our text over XX,XXX visits week, messages glucose average over patient blood responding chat

We significant products investments integrate our are services. also and making to

self-directed create product this programs of Teladoc. combines improving For and MyStrength outcomes. the care innovative health example, integrated to access allowing breaking see Livongo we the with convenience Livongo’s we highly and new personalized door scalable, for pair mental both network digital the opportunity by right virtual tremendous clinicians. access will front health digital that will expertise of behavioral of capabilities offering to and to the This new a platform Teladoc’s care health barriers find down to further of increasing With consumers care, a behavioral time, integrated at offering, right the a

and already from year. seeing are expect to this behavioral globally excitement the market in more of the offering by health it the launch broadly for We end next-generation clients tremendous

our guidance the and Before in over XXXX. I results Mala regarding outlook our turn to more to talk discuss to forward detail, I for want call briefly

entering this have significant a our confident XXXX and the we transformative with for momentum outlook extremely we XXXX. Following feel year, in

to quarter growth billion and growth revenue programs, in the of sales, a turn call full pro across of we in markets strength see expect channel, our to continue the With utilization, license for to guidance. robust the new For business, or as forma growth in as to strong person XX% for of XXXX international the XX% be is multi-product and platform Mala chronic direct-to-consumer in to growth robust XX% approximately Livongo. that, care the the year, of health the acquisition range for well $X.X member the of result market, including This fourth broad-based representing growing momentum the increasing whole we billion, continued demand additions. $X.XX a demand our of for including review our in system pipeline I’ll detailed over

Mala Murthy

you, and everyone. good Thank Jason, afternoon,

results, are into reported the the get details some I the metrics. our of Livongo the note I Before close we transaction, would to following of of like streamlining that

revenue, broken broken international. those and disclosure is revenue into revenue access buckets Each out out of to visit between continue revenue will further fee Our fee other U.S. revenue. be and

how volume manage international revenue aligned including which business. visit aligned disclosure, the U.S. both are volumes, is our with visit with Our we metrics and

suite Care multiple This count also is utilizing are only individuals care a are Livongo metric, We unique which enrolled Chronic unique so a members captures the in once. based the programs. adding solutions counted chronic members, total Enrollment, on new metric of of total

quarter XX% XX% million, total of in of revenue prior revenue acquisitions the XX% to of from year-over-year of as Livongo as total to decrease fee Health, of percent the which is The Total generate revenue grew of fourth growth the for the on to quarter fourth results. year. of fee $XXX XXX% XX% increased representing quarter. XX% an revenue million, over the million access U.S. prior million the Turning for quarter $XX to revenue in $XXX Visit revenue subscription due to majority year’s fee year’s quarter. access was revenue significant or and XXX% InTouch of a both revenue revenue compared international versus prior $XX basis. Total and comprised organic a increased visit fees.

quarter. visits fourth membership one million XX,XXX at an to access. members, XX.X chronic which in the includes an year-over-year. period of pro Turning quarter million Platform-enabled the visit end sessions, number increase sessions our fee individuals was XXX% only in facilitated membership the through network InTouch licensed of clinicians, U.S. enrolled the the members, than provided members the the the times an in our sequentially. quarter, acquisition ended paid quarter chronic XX.X and additional growth of care representing was with own enrollment, of year. We which access We platform by XXX,XXX our Total clinician, increase XX% by Teladoc care represents Health. with X and of Individuals same forma million the for versus more than programs, clients’ of in of X was X.X provided more million year encounters software last of our prior

XXX million our the in increased an was to fourth sequentially. of in how $XX.X the XXXX. purchase up fourth driven XXX% purchase of million the $X.X loss million $XX in members and we Gross includes in benefit million a adjustments attributable the gross EBITDA Adjusted business, of to includes and which Adjusted adjusted Adjusted for compared year’s Fourth related well the XXX devices by in the the to compensation Net increase of consolidated of of related million as XX.X% model. last payment the $XXX.X for Fourth quarter earlier, PMPM Fourth of was of our EBITDA fourth loss increase loss share over of compared to well basis year’s benefit year. to On from XX.X% we merger utilization quarter net increased $X.XX intangibles, of net gross of compared as in $XX.X the year’s loss increase results. driving fourth Livongo costs accounting in a and to over the XXX expenses last million have a basis-point Livongo. million includes streamlined with paid mentioned quarter to XX.X% was value to on quarter half the accelerated of adjustments, previously. quarter basis-point manage fourth in include the EBITDA per accelerated I with $X.XX with the Adjusted a $XX.X utilization year-over-year. per as Livongo. margin depreciation the our The accounting adjusted by transaction and with related the $XXX noncash stock-based prior increased merger. a inclusion clients to quarter increase transaction $X.XX $X.XX share fourth to our quarter members of and basis, fourth excludes quarter, quarter quarter, in fourth rate of visit the expense and loss prior million, net the stock-based compared the better as $XXX in was in costs, delivering annualized noncash metrics align as lower $X.XX to merger mentioned quarter quarter on quarter to As profit, million of amortization was for focus regardless quarter XX.X% quarter. to of $X.X gross XXXX. margin profit points fourth of profit XXXX. Livongo the attributable compared in net compensation an loss $X.XX fourth

was million share fourth would the quarter loss costs while transaction-related investments, $XXX cash the We $X.XX. our debt tax December in per as outstanding and ended have XXst with been benefits, and $X.X the recorded in all total short-term quarter billion. Excluding of

guidance. forward to turning Now

growth full expect XX% fully $X.X For Livongo. over revenue or to we of representing billion, in XX% to the the for year of Jason XXXX, mentioned, to as the XX% $X.XX to be acquisition billion pro of forma prior year the XX% range

pain, revenue growth by, first, confidence growth as continued back visits that Our and disease-related in depression. anxiety among such strong in particularly utilization, is lower underpinned noninfectious hypertension,

growth continues at that over the During of with visit our related diseases, the a which XX% new led volume has the leading of the year visits continued registered rate the the twice in Year. member by growth XX% fourth past our We’ve forward also utilization. up growth as course for into of visit opportunity visit mix individuals new quarter, to XXX% as deeper member Growth the is health, behavioral seen last accelerated fourth the engagement additions. year. to specialty New in and indicator was Registered growth from year of diversify, newly in trend creates approximately has of in registrations growth visits over quarter experienced strong, been of throughout tremendous noninfectious in in a XXXX particularly growing

volume strong guidance. outlook. together All in to volume our of can reflected visit that see in our comes tremendous that And give visit us confidence you

XX between to to volume visit representing year, be XX% total XX%. million XX this expect We growth visits of million and

built than growing sales, were In strong pipeline care Teladoc multiproduct and deals. including member and a that client shows use stronger that products. And growth deals program. clients our our robust chronic for more all for experience demand whole Second, one our we multiproduct person retention, two-thirds of XXXX, of engagement, have significantly PMPM are of

revenue has brand direct-to-consumer also XXXX. channel, outperform, million continued Next, delivering our BetterHelp in in significantly over $XXX the of to

continued continue used growth channel. additions We at and new XX% expect both, gain that least another of existing year position as and of in our clients. XXXX expand leadership member in robust at to scale we Fourth,

million approximately million membership X.X off members rolled which temporary is have million to net to in first to that disclosed. the XX members expect COVID-related during previously paid of as XXXX, We quarter, the XX grow

We an expect visit XX to additional to fee million only access individuals. to available be million XX

for demand platform system invest robust, increasing and these see look capabilities. purpose-built and also hospital organizations to solution telehealth health We in our secure as

end but of driven the by market, increased year channel this we the last InTouch the at upon in growth existing expansion target accelerating XX% organic not regions. the into XX% growth new least, acquisition. closing geographies last of penetration to international provided in and expect high We range the in And

to $XXX across expected integration Livongo XXXX EBITDA midpoint. expect as of an growth channels, approximately investments increase Livongo in strength adjustments Livongo product of as adjusted an the by We EBITDA by representing the the the The to is over benefit million to as development expenses business, Livongo merger. of including offset And partially including the range contribution attributable million, adjusted on in the the well enhancements and back XXX% overall devices a full in $XXX from from of existing at million as into year $XX new to accounting purchase lower driven products. well related

first total the million, $XXX year’s over million For revenue representing growth $XXX to of of prior XXX% expect we of quarter approximately XXXX, the quarter.

the We in We quarters to rolled of expect of the year-end. is have quarter discussed million of temporary off the which between prior range million, X.X anticipate and membership members subsequent that during XX X.X total in paid million million approximately net X.X visits million XX first visits. total to

We remarks. including million to I range to Livongo expenses expect related back in accounting Jason approximate on Livongo for the first adjustments of adjusted closing will turn transaction. devices, million purchase attributable quarter benefit the from $XX With call be that, to to $X million, to lower the an EBITDA $XX

Jason Gorevic

amazing Thanks, during around want serving members Teladoc year. thank clients closing, world the Mala. to to and I commitment entire the for their In team our challenging a

the mainstream. consumer seen months, care a health as change in expectations care monumental for has entered they way the experience access and the Over XX past virtual firmly we’ve

by capabilities of the the care. extending around company, clients consumers a while position virtual expanding we’ve enabling As world and rising significantly responded our demands empowering leadership and delivering, meet our to by

you in your all the thank Health. always, continued with that, And we’ll questions. for open for Operator? As Teladoc call interest

Operator

Morgan. Instructions] question from comes [Operator First Gill with JP Lisa

Lisa Gill

Thanks just year, understand really a want to quick of very much. really Jason. I couple a great Congratulations things. on just

now You And members, the I be secondly, now. reaching season, on are retention rates, you for it’s dozens new to But, little Is talk just how billion cross-sell, that just gave us $X.X would transaction? that a the there about competition selling competitive can business what a to that the to you information. the ask about so start clearly I made But, to you, know saw but XXXX. the understand marketplace. business. Mala. in retention paid did the first much market around pieces about early about you XXXX usually right right you thinking want of goal way because when of then, lot U.S. know side, you really added in around Livongo Thank you’re included you of think any quantify so that that we in I set

Jason Gorevic

Lisa. Thanks, Yes.

we really occupy. solution large think up truly Let continue at time of that of that’s value sort had indicative talk of to start of previous always product we’re and me When mid-XXs. actually I’ll client full market the the and selling move this I number growing been we We and relative that. sort in about can we we seen is about the recognizing opportunity opportunities pipeline high start with look faster to the with last years. full have the in the growth that what continue answer And the we’ve the in a last portfolio, the that membership be season to discussions our our differentiated. of is membership to to full in have fact, to And I I’ve With clients bit is credit over low pipeline, a the XX% opportunities, the of levels, than is the And all see they retention opportunity and year. our seeing that sort and across the over talk position start to of of into competitive at then, unique little retention respect as situation. historic weeks levels, the And which rates, rates landscape. several solution consistent it cross-selling same

was we landscape I impact but fact, said on and roll on And revenue of created. So, the What cross-selling we’ve blue much has is is from products a can’t this year, And of narrower away we’re new very in a we I talking impact Those before felt year. would a compete the the to we take really the sales. of over back what about to looking just who at and XXXX. the plan evolving competitor we’ve XXXX. I course say, back set the than paradigm sort half regional I on believe dozen will of will With small that for over ever some in cross think prospects of a respect in synergies. relatively we’ll better the half our still feel good, have the who

characterizing of we the more pipeline of pipeline cross-sell doubled And pipeline middle before cross-sell long we’ve of of the Livongo sort Just the the opportunities, sort we opportunities. at we today started the than And collaboration the commercial look transaction. remember, closed last just versus quarter.

I more and and very beyond. significantly of in good view it. I will would synergies the in those So, say, very, that the relatively materialize much ‘XX believe We’ve conservative revenue from a XXXX taken, contribution about feel

Operator

question from Sandy Next Securities. comes Draper Truist with

Sandy Draper

really and higher just showing when than the is but get echo model, more I drive access and utilization decoupled trying the grow pre-COVID, fee? a of the dynamic visit business we you the because of growth love also the Jason, Post-COVID, faster I volume I’m you you Thanks growth new value or you on with really power Mala the higher well, membership? just the I’m the you post-COVID think plus really thoughts strong ability about versus as visit about and used show think your level, back growth visit access is because on this were is high wondering COVID, longer-term that chime fee the platform. your it would are is Is to on know would to year. just de-growth Thanks. excess very in that really the congratulations focused maybe very growth. from fee how think ship than because one it of of -- around things to much. will a diversity about and about talk thinking driving to clearly it

Jason Gorevic

No, Yes. I Livongo But, increased rapid the will a that will. I question, question. what than you’re I appreciate complicated see it’s volume to visit with continue subscription at more And think, the going we think fees to Because rate grow business. sort a membership of get member right? significantly with the per

You’re grow going right? revenue access of bit mix a there’s on faster to the subscription see there. a the fees, little So,

I one we visit of continued think, XX%. the the things our me visits is year-over-year, on really saw visits grow in the makes volume and look by infectious the XXX% that fact that growth that future I of fact bullish decreased disease year, would this at of spite

for where us situation coming are broader array reasons. a to this much have we of people So,

dramatically, more health not season. and of mask example, sort that -- season think half because because we look into and and mental the going as to you’re XXXX, the a back flu of really guidance ‘XX visits we’re half it’s through normalized social of our And a we’re even we dermatology, yet, into account to contemplating and distancing flu over cold see us flu the I in it low gave We’re ‘XX, return We’ve taken until historically first XXX% our of seeing facing wearing. that for for that increase similarly. channel, BXB

consideration all So, taken we as that’s think of long-term about growth. the into

and grow clarifies than that visit a hopefully, access volume grows subscription than fees bit, to little likely Visit So, faster yet right? membership fees. are faster

Mala Murthy

a if growth, and point you in those our is, we on great sort to terms it of of is remarks about fee around, those of prepared feed of as access about. revenue reinforce much Yes. in revenue, And bigger the addition it’s fee what revenues, why different would I What in is most both Sandy, the talked both have with visit of said I right? access and access growth of confidence a do add Livongo fee think the a it’s Jason’s growth the base One question. factors, InTouch we’ve to revenue, are few of just

and is platform of that so, We’ve programs, our going made our around continued in growth going in then And the the our InTouch by talked our about our And make access growth strong chronic driven growth ATS pipeline be gains driving the and revenue in is [ph] Jason there multiproduct revenue, to and growth to license of utilization. sales. solution, specialties, be in we point that all will then, the fee feed visit to continue growth. really to it what’s condition

respect points from to XXX increase we to quarter. third saw -- in saw over results, the our utilization over to You the quarter, in very strong with points fourth fourth the XXX XXXX, relative a in quarter of relation and sequentially, much

in will in continue the to we visit mix of drive on in in XX% growth visit volume quarter. the was that increase noninfectious will growth is The and growth back revenue obviously about utilization, we of our the So, growth. significant It and seeing diseases. that fourth feed utilization are

there. that strong mental that be health, seeing we’re be about continue We’ve are would growth we specialty, is the whether the So, talked to it utilization. growth drive in going derm, seeing so to

growth those growth. what confidence our is fee in well revenue both, as the is as of all visit the So, access underpinning factors revenue

Operator

Wieland Piper Next with question from Sandler. comes Sean

Sean Wieland

deeper. guess, bit just go Hi. Thanks And so much. to little Sandy, to follow-up a a I

opportunities Mala, percent I’d the is to you outlook. that to of penetration is related of And continue know, grow numbers? registered today a factor think What just members you to registrations. that, that longer-term to membership? new membership like clearly, moderating overall So of are market in growth virtual then, And there’s do called care, out,

Jason Gorevic

members opportunity speak growth you and that membership what mentioned continued So, is to actually first, the XX the the earlier Sean, is which year. the had process, after pipeline, last the this I in it a million year -- XX That’s larger you at will, years. just right? of are I just in last time pipeline, was we’ve growth. growth is year. than two gives in if our members membership question those at me number. let look staggering that refill It’s the the of We selling last me growth year sort explosive earlier, So, million last to confidence an what XX% if membership And added think,

view at year. was conservative larger And so, is it membership yet and we this take growth last a the opportunity earlier growth, time given XX% relatively stage the the of than

We So members longer space I think still existing clients. worth within that million gives XX have me of significant term. over confidence white the

So, about it a we I of look over not membership good And feel very, a very growth. continued question. multiyear, quarter-by-quarter sort at

Mala Murthy

your out Yes. what as know, to we, question, And do you you break asked. Sean, second not

you We information. of have lot given a

As out earlier you in give of was we information. piece call, pointed don’t every the

that’s something So, we’ve out. broken not

Jason Gorevic

about contributes to the among products. We but mentioned, the and especially in enters registrants have utilization, increase repeat first our them they year talked, the that that not visit overall as time you how multiple growth, we that only first-time flywheel that in and register, get also

Mala Murthy

in important it’s right? membership addition talked that And important running as is about, ‘XX. So, that to Yes. have is well growth, also we registrations, drive we utilization continue as of ahead

Operator

with Leerink. Next Davis question SVB comes from Stephanie

Stephanie Davis

I else, the quarter, congrats guide. on the guys. hear Hey everyone congrats on

Jason Gorevic

Stephanie. you, Thank

Stephanie Davis

biggest you what about about dynamics a that geographies could talk international strength, on market? remarks. and competitive talked of maybe you a were bit in Jason, was differ I you dynamic little the really seeing that how strong hoping pockets the more prepared your

Jason Gorevic

you really and prospects. our I’m our for excited interest we’re are. absolutely. channels the the starting Livongo products to those And we’re InTouch tremendous products. about stride know for in really opportunities solutions, And the activate international the how international international large seeing and hit Yes, markets just

on is good where So, the health The well geographies, to with we’re in -- tech-savvy seeing is by exciting the we respect both in Europe, as growth and especially Brazilian the UK, private characterized Brazil American South to see it’s market market very prevalent. population, as where rather a the very insurance and markets as continent opportunities. continue a

and continues to a with strong in Europe, very, launched Telefónica relationship. we Specifically that be very

over launched then, for prospects the in past And year, We’re of that we region. very relationship. the bullish on Nordic course, the

our So, right areas. now, those primary are growth probably

and strong to Australia New steady continue and have a footprint and Canada in We Zealand.

will I’m perspective, role of the that of game-changer the our a unlocking markets book in in those international there. my of believe markets very bullish of from business. so, the capabilities I And for very, Livongo be terms some

Operator

comes Canaccord question Genuity. Close with Richard Next from

Richard Close

episodic in primary So, we thinking on do I And then, on does about more think model hammered drill from overall, been comments on little bit Obviously, recurring, revenue we how How does of going a the model you’re But, here. more down there? were the the was evolve? metrics about care? about model focused shift Jason? that? just type the how you’re business And pilots that’s positive. that it primary What can to an for membership, or care, talk but on to payment

Jason Gorevic

Yes. I appreciate the question, Richard.

We’re really prospects excited the for PrimaryXXX. about

the a we’re worth fees care than We for care. primary payers. start steps have preventative value-based in of in to XX-minute move us And opportunities to opportunity risk-sharing to model. will appropriate with in with to arrangements care on toward lines into very putting arrangements metrics that an or think more the that screening and and for along it small outcomes-based incorporating that, symptomatic check a for I of with and reimbursement about of talking a our of of diverse screening associated from introductory improvement quality of variety the be PMPMs, because, course, quality more very, enter measurement And ability a honestly, is move annual ranges, the example. documented of a large a -- wider visit also savings or with share of new needle rates Having visit number some said impactful higher and health plus and pipeline of visit, relationship plans going ultimately more

but eyes that open cognizant those discussions, to having wide relationships very data sure already we we right We’re the step carefully with enter and and make where need impact. can know to that be the biggest able into that have we also into make those we’re to

of our see member significantly that were serving higher model, with So, you’ll in for of cases, think PrimaryXXX all those evolution I those product. revenue an but a who per

Operator

Capital with question Markets. Sean RBC from comes Next Dodge

Sean Dodge

a you Livongo like significant, Mala, the change was aside, the sequential or versus lift the inclusion Maybe pricing the multiproduct PMPM, much -- the from on of visits even If sense excluding sales something us you the give we can was to there contracts? pretty what how average there. driven related set that maybe by Livongo true-ups included

Mala Murthy

Yes.

we visits of specifically from by visit the we went to Livongo, to as the of see think I definitely So, the even excluding $X.XX the quarter I about year The want expansion is, But will in of because are saw a I out a don’t individual talked happen. the out quarter. much say that how increase. we you in so came clear. $X.XX of as want it significant of a sequentially, in addition But, in lot for went it addition the through of a $X.XX, very did there it pretty And it the on specifically there so you volumes two what break We’ve the to absent quarter. through PMPM was is more our our significant through which a the way rerated an included was as of a even contracts, nice rerating way, expansion that. is, the through break PMPM -- be Livongo have about you did months the we nice lot a we’ve the as compared year. to what increase impact -- I with the of shared but PMPM, would said, of quarter, the fourth expansion actually Livongo, see did in drivers, don’t we

Operator

Daniel from comes Citi. Grosslight question Next with

Daniel Grosslight

on on to and little Medicare, focus I wanted fee-for-service. a bit MA both

around third to XX think X.X beneficiaries benefits. year you that type aboard. plan million the I I some the mentioned, will you mentioned around had have for XXXX telehealth in quarter, million access MA of And CMS lives think,

like on little past made this MA the during uncertain. more about side, And I you’ve been fee-for-service if an of progress a update can know, give you General’s don’t seems some in regulatory the be So out visits. noise the some might curious, fee-for-service there’s office landscape us auditing the it telehealth AEP. And Inspector on then,

your curious I get market? which to contracting within thought the in in So, would going to Medicare is market strategy your provider have that segment, that fee-for-service your particular, into direct go any and on if suppose impact on

Jason Gorevic

and I’ll I our opportunity by as Mala fee-for-service continue Yes. one to with that Medicare business, the to health us our and to of second can and speak membership a to in an harder and primarily CMS. in for is little making take lean Medicare hospital we’re for respect bit providing progress systems health membership. their systems being think reimbursed then, hospital the care terms to continue first, virtual

being we well that’s as but the federal after. think practices with collaborative to the that We respect that are sure various practices are best continue that models, with health we’re the bipartisan right respect CMS terms as active needs sure the that on private matter, needs, delivered winds a it’s being it It’s there guardrails that a actually. with around comes the best we’re And regulatory payment when plan to to issue. in blowing think or to right and optimistic, also not make it, very working the in whether are best be legislators of making important to only consumers looked care to and have We the rare state And government for proliferate payers’ very environment. because direction. the all also

So, active fronts. on we’re very those

clinical of place actually be use took bit things like quite applying artificial intelligence to to and visit a that that. to to do a able that things, technology We’re like validate

that So, I very good about feel the direction heading. that’s

we numbers our the that of to keep the Advantage continue We’ll population. updated go market. you to to progress apprised in with quarters. Medicare continue Advantage as make We I Medicare we respect gave that through don’t know

Mala Murthy

the Yes. seen government, growth includes And member other about about talked XXXX, thing in Medicare in would we’ve only the that addition add how we’ve talked is, Medicaid. I as or we million Advantage XX nice whether have

-- more government. addition it’s strong we it think so membership as across of are and growth So, seeing

Jason Gorevic

through frequently also isn’t who for of I’d employers large Medicare, the plans. us come It’s populations within last to Maybe but are of health part those populations coming some growth in about, seeing that meaning just from populations where market thing seeing well. those health we’re mention is, as we’re talked plans the private a Medicare the

Operator

Cowen. Next with question comes from Charles Rhyee

Charles Rhyee

versus within to guidance. U.S. paid of number, existing think a be little those on was that give but membership I numbers, past, relates but in don’t up growth? which a time in to the to Just that strong. And can the much members first is from users know secondly, on the bit as utilization PrimaryXXX PrimaryXXX a you number, conversion utilization follow would it growth on of then, membership you repeat or sense this how it of quite users? bringing give right Is incremental membership that is Thanks.

Jason Gorevic

Yes.

new the both. actually is Mala question bit PrimaryXXX about talk PrimaryXXX, can registrations. really, a answer I little utilization So, and it’s a registrations, membership then I’ll the of take repeat think because With and respect to

making going in available and to existing to existing populations, cases, we’re we’re them. So, PrimaryXXX clients some to

our them, PrimaryXXX. count making members, and wouldn’t we the in time, the to and products cases, newly going our other PrimaryXXX populations It for those bear to services it. In where of already we’re maybe be may there right? are that first so, we’re new They’re count. bringing And product other them alongside also for and membership available

PrimaryXXX, get on programs. have management basis sort some then, you driving chronic other versions may So, into have may as-needed the may that condition of and product, a members they our other revenue, of our and/or either

confident to we’re see though in once. up going you’ll different only ways. can member it think is What show you count a I be So,

Mala Murthy

we said, And Charles, a break don’t regarding few just facts. Yes. -- as it other you but your out, question, we give you I’ll

it visit about you once, in our volume first if helpful then really They repeat. came always is, try think know, actually about quarter, from users. half that’s And future you time driving about of they will it think we utilization, and first as The right? the as

utilization So, that something underpins that as a that forward. is move our factor in also we is confidence driving

were talk the of about did we want don’t we we outpaced half registrations users. that say the volume fourth the robust volume from registrations, from January, the and say in think visits, about sort fact nice at are quarter. to growth, than I over in half other seeing more durable repeat the But, And are fueling about well coming the only did first is, when Morgan came few membership thing years. of the JP showing that how we would then, that. I fact about very time dynamics our of would we visit flywheel So, users talk I growth past first-time the seeing

Jason Gorevic

And true whole year. the for that’s

a was quarter. for was true and as true, the well. whole that fourth was year So, it That was trend. the in That

Operator

Singh with question from Credit Jailendra comes Suisse. Next

Jailendra Singh

employers now very I was strong trends to now to there? Revenues DTC very opportunity does range, related your mental there. you With compare are overall telebehavioral Company, the just XX% On with prospects? you margins your BetterHelp expected on million of BetterHelp, growth follow-up that overall wanted grow I piece how impact business on in having becoming wondering health $XXX that sizable profitability willing talk in side to if a XXXX. about of margins any with business, that that and services, and corporate long-term do on several see part, expanding

Jason Gorevic

answer then the dynamics and let BetterHelp talk we and around market Yes, Mala can about So, don’t. to me margins performance. really

One, us. very Jailendra. out some to of we’ve in respect be fruitful for to a EAP that’s actually arrangements, plans, turned with taking couple a into market things, BXB and particular started BetterHelp think I

The don’t BetterHelp decide expenses, use I people who second or either that reasons are most thing don’t of to adequate would for have that coverage, want especially say honestly. to is, they turning coverage

same cost the BetterHelp of One get month, and would in if worth you the maybe can you you’re you a month’s single a a fortunate. half, for to therapy or otherwise a of get about person visit can visit that propositions for -- for a that is value therapy,

proposition opportunity, many continue we right? been And always has continues very, be to the BetterHelp underpenetrated it market otherwise the And very, that significant. very turn very have value the strong. case wouldn’t gotten very the that case see therapy, so, so, and who And to sort to of of be the is people

And in sight. so, we don’t see any slowing that of down

Mala Murthy

good it’s that of that business I from obviously break driving things, but few margin am making margins color out I progression And the past of just really Jailendra, years. progress on the in standpoint, few margins. back been what’s the will there really little pleased a has for aspect not really with And a our to margins. of part been of in you right, give improvement a in terms our the business, over has any on of bit margins

We are seeing improvement in lifetime value.

are and We retention lower seeing improvement in churn.

We different comes We are lot constantly the as it We test do a go looking pricings to channels. innovating through year. at when of different definitely through we the year. product improvements

on, So, underpin focused cost that we there keenly that levers very vis-à-vis seeing is which think improvement are acquisition, very, in we’re about bunch say, a the if of very we something different that. margin some the revenue have to seeing. progression strong you of I are And

pleased I’m the with BetterHelp. progression for overall, margin So

Operator

KeyBanc. comes with question Hooker from Donald Next

Donald Hooker

PMPM services the marching So, your high I Or to of of keeps to there over a highlight? Just was sort you full on in where point of metric time sort in a the appears for I That that or up. is of think based Livongo, rising you very, particular future? been it maybe of a a out somewhere that sort question, $X.XX comments PMPM another Is in there of driver about of ahead. can I gave, kind to your very neighborhood. way That’s it client that there your wanted wanted somewhere with you where a ex comments revisit ask sort that time? the Is out? stops think guess, stack taps from that sort model,

Mala Murthy

our where expanding about a post If really it I So, would market studies is couple you products first actually we about that services. One the about way our past over would thing think it services, PMPM, products expanding the the And as expansion right? shown a our right? and been PMPM. drives have it’s it and we suite and increase suite then, We’ve are services of into I think that progresses, second expanding pre, and the steadily is, products multiple we because not and how see actually services, about stickiness, which is about more say sell years, in doing is, in PMPM say product also that I many is, episodic things. what is of been we case have longitudinal, drives of

as our of and to I our actually we growth the So, XX% think -- PMPM. the growth at XX% the are business we And the have think I it talked and business what about, expand way where look pieces about where have headed. to if we I underpin all the of I the right we of is, that about to done the feel various we that continue ingredients progression

Operator

does call today. this the And for conclude

now disconnect. may You

Teladoc Health (TDOC) 25 Feb 212020 Q4 Earnings call transcript